“Based on my training and experience, I know . . . Bytechip[‘s] Solidfi vAccount **1162 [is] used to provide money laundering infrastructure to a large wire fraud scheme perpetrated against numerous individuals. Bytechip LLC, Gatcha Pictures, and Paralel Design are entities interconnected through IP addresses, outgoing debit transfers, and intrabank transfers of funds, each performing an important function in a large fraud conspiracy ring. None of these entities bears any indicia of legitimacy in its operations.”

💡 Federal prosecutors previously alleged Bytechip, Qbit’s alter ego, operated as money laundering infrastructure with no legitimate business purpose

“I have demonstrated that wire fraud proceeds from pig butchering victims are frozen in . . . Bytechip Solidfi vAccount **1162, and that these accounts are used to launder the proceeds of wire fraud.”

💡 Government prosecutors directly linked Bytechip accounts to laundering pig butchering scam proceeds

“We have literally never seen a world crisis like this. We’ve got Americans and people all over the world who’ve lost all their money. . . . [W]e have human trafficked victims that are forced to do this dirty work . . . . And when they get there, their passports are seized, they’re put in buses and they are moved to these compounds where they are surrounded with men with AK47s . . . . The NGOs that I spoke with on the ground in Southeast Asia told me 7 out of 10 women are coming out of there saying that they were sexually assaulted . . . . 300,000 [people] estimated by the United States Institute of Peace are behind held against their will.”

💡 Former prosecutor confirms the international scope and human trafficking dimension fueling these scam operations

“Lee told Plaintiff his ‘credit score’ on the platform had dropped to 80%, and he needed to restore his score to access his cryptocurrency. Plaintiff that had two options to restore his credit score. Option 1 was to pay $20,000 ($1,000 per point to restore) and reset his credit score immediately. Option 2 was he could wait 10 months for his score to return to 100%. To induce Plaintiff’s further deposits, Lee offered to help financially with Option 1.”

💡 Shows the systematic psychological manipulation and fake fee structures scammers used to extract increasing amounts from victims

“After the Scammers persuaded Class Members to deposit additional cryptocurrency, they transferred it along a wellestablished scam cryptocurrency laundering network—controlled by Defendants or their coconspirators—(the ‘Laundering Network’) until it arrived at destination wallets held at cryptocurrency exchanges”

💡 Describes the deliberate creation of transaction complexity to obscure stolen fund origins and destinations

“A significant portion of the stolen funds are directly traceable to the OKX cryptocurrency exchange at address THGTenLmvqWycGLGtgRvX4wURiHQeDvNps (‘the THGTen Destination Wallet’ or ‘THGTen’). By their own admission, Qbit owns and controls this wallet.”

💡 Establishes direct connection between victim funds and Qbit-controlled cryptocurrency wallet through blockchain analysis

“Qbit filed a nonparty motion to dissolve or modify the preliminary injunction order, claiming that the court did not have jurisdiction to impose its injunction and that the funds contained in the THGTen Destination Wallet were legitimate. As evidence of Qbit’s legitimacy, they relied solely on a declaration of their CEO Yujun Wu. The declaration is full of vague and conclusory statements that are demonstrably misleading and lack any documentary support.”

💡 Highlights Qbit’s attempt to use misleading statements to regain access to frozen funds linked to fraud

“Despite their reliance on Interlace to bolster their credibility and assuage concerns of money laundering, they failed to disclose that Interlace is deeply intertwined with Qbit, including that they share significant digital infrastructure and the same founder and CEO, Defendant Wu.”

💡 Reveals deliberate omission of material fact about related entity used to create false appearance of independent verification

“The THGTen Destination Wallet has exposure to 53 different reported scam addresses and 10 different reported fraud shops… The THGTen Destination Wallet is also within 3 hops of two entities sanctioned by the US Treasury Department’s Office of Foreign Assets Control (OFAC).”

💡 Demonstrates extensive connections between Qbit wallet and known criminal operations through on-chain analysis

“Once transferred, the Scammers launder the funds through a complex web of related transactions via a well-established scam network of related wallets. The victims suffer a total loss of their cryptocurrency and the funds used to purchase it.”

💡 Emphasizes the finality of victim losses once funds enter the laundering network and are converted to fiat currency

“Despite Qbit’s claim that it uses its OKX accounts for clients’ ‘payment purposes’ and ‘to provide trading services,’ the wallet averaged only 1.66 transfers per day, suggesting that the account is not actively engaged in transactional activity.”

💡 Statistical evidence contradicts Qbit’s claims of legitimate high-volume business use for the wallet

“The Scammers first solicit victims by sending boilerplate inquiries about investment opportunities or part-time work. After a person responds to a message, one or more Scammers contact that person and describe the opportunities, all of which have the purported potential of earning the victim significant income by completing seemingly legitimate work tasks for well-known companies or by making seemingly legitimate investments.”

💡 Details the standardized initial contact approach used to identify and engage potential victims

“The international crime syndicates operating these scams include but are not limited to the Chinese 14K Triad and the Karen Border Guard Force. Wan Kuok-Koi a/k/a ‘Broken Tooth’ is a reputed Chinese mafia boss who has been sanctioned by the U.S. Government. He is the former head of the Chinese 14K Triad.”

💡 Identifies organized crime groups operating scam compounds and their connections to sanctioned individuals

“Myanmar has become the prime destination for criminal groups, where money laundering and online scam operations relocated after several governments in southeast Asia cracked down on criminal gangs. Notably, Myanmar is one of only three countries on the FATF money laundering and terrorist financing black list, along with North Korea and Iran.”

💡 Explains how criminals exploit jurisdictions with weak anti-money laundering enforcement to operate scam infrastructure

“Qbit formerly operated as Bytechip. Defendant Bytechip did business as Qbit, was owned by Qbit’s executive officer, Yujun Wu, and had an office at the same address as Qbit: 2381 Zanker Rd, Ste 110, San Jose CA 95131.”

💡 Establishes the intertwined nature of corporate entities allegedly used to obscure ownership and accountability